What's my best financial move concerning a land and home loan?

  • Thread starter Thread starter Shelton H
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Shelton H

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My wife and I are looking to purchase 2 acres and build a home. We already own 18 (cattle use) free and clear. The two acres (with planted 20yr old pines) we are looking to buy will be where we would like to build our home. The home would be built by a national home builder (Shumaker Homes). We just don't know what the best approach is as far as financing. Buy the land, first, all together? Try to get it an some type of agricultural loan for the whole thing? Any advice would be appreciated. Thanks in advance.
 
Pretty much you have to do a loan where the land loan and the construccion loan are all together. That will be your best way.
 
You need to buy the land first. You could use your other acreage as collateral but the problem will be in attempting to get a mortgage. Lender will not give you a mortgage if you do not own the land free and clear. Going for an agricultural loan does not apply to a residence but barns. Talk to the builder and see if he has a way of handling this.
 
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